Workington leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Most owners of residential leasehold property in Workington enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Workington you would be well advised to check if your lease has between seventy and 90 years left. There are good reasons why a Workington flat owner with a lease having around 80 years unexpired should take steps to make sure that a lease extension is actioned without delay
Leasehold premises in Workington with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with procure Workington lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
During the course of the last few months Reuben, came perilously near to the eighty-year threshold with the lease on his leasehold apartment in Workington. Having bought his home twenty years previously, the unexpired term was of little relevance. As luck would have it, he noticed he would imminently be paying an escalated premium for a lease extension. Reuben extended the lease just in the nick of time in June. Reuben and the landlord subsequently agreed on a premium of £5,500 . If he had missed the deadline, the premium would have gone up by at least £875.
Dr G Gunderson bought a purpose-built flat in Workington in July 2007. We are asked if we could estimate the price would be to prolong the lease by ninety years. Comparative properties in Workington with a long lease were in the region of £280,000. The mid-range ground rent payable was £55 billed yearly. The lease finished on 2 September 2104. Considering the 78 years left we estimated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 not including costs.
Dr U Walker bought a one bedroom apartment in Workington in June 1997. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by a further 90 years. Comparative premises in Workington with a long lease were worth £186,000. The average ground rent payable was £65 collected monthly. The lease came to a finish in 2084. Taking into account 58 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £24,700 and £28,600 exclusive of professional charges.